Kimberly-Clark (NYSE:KMB)- Stocks Under Profitability Radar: Lamb Weston Holdings, Inc. (NYSE:LW)

Kimberly-Clark Corporation (NYSE:KMB) also making a luring appeal, share price swings at $121.79 with percentage change of 4.11% in most recent trading session.

Kimberly-Clark Corp. reported Q4 net income of $505 million, or $1.40 per share, up from $333 million, or 91 cents per share, for the same period last year. Adjusted EPS of $1.45 beat the FactSet consensus of $1.42. Sales for the quarter totaled $4.54 billion, unchanged from last year and below the $4.55 billion FactSet consensus. The company has raised the quarterly dividend by 5.4% to 97 cents per share from 92 cents per share. The dividend will be payable on April 4, 2017 for all shareholders of record as of March 10, 2017. Sales in 2017 are expected to be similar to 2016, which were $18.2 billion. The FactSet consensus is $18.5 billion. And the company sees 2017 EPS of $6.20 to $6.35.

Profitability Valuation

The profit margin can answer significantly to find consistent trends in a firm’s earnings, the Co has positive 11% profit margin that indicates every dollar of sales a firm actually keeps in earnings, and the larger number indicates improving and vise worse. Gross profit margin, operating profit margin are its sub parts that firm has 36.30% and 17.10% respectively. Moving toward returns ratio, KMB has returns on investment of 15.60% which indicates firm’s investment efficiency or to compare the efficiency of a number of different investments.

While returns on assets calculated as 13.40% that gives an idea about how efficient management is at using its assets to generate earnings. The firm attains analyst recommendation of 3 on scale of 1-5 with week’s performance of 4.96%.

Moving toward ratio analysis, it has current ratio of 0.90 and quick ratio was calculated as 0.60. The debt to equity ratio appeared as 25.79 for seeing its liquidity position. The firm attains analyst recommendation of 3 out of 1-5 scale with week’s performance of 4.96%.

Lamb Weston Holdings, Inc. (NYSE:LW) need to consider for profitability analysis, in latest session share price swings at $37.49 with percentage change of 1.96%. LW has returns on investment of 15%.

The firm attains analyst recommendation of 1.60 on scale of 1-5 with week’s performance of 1.63%. The firm current ratio calculated as 1.50, this value is acceptable if it lies in 1.3% to 3%. But it varies industry to industry. To strengthen these views, active industry firm has Quick Ratio of 0.50, which indicates firm has sufficient short-term assets to cover its immediate liabilities.

 

About Richard Avery

He is a capital projects manager and process design engineer at a large-cap company. He has renowned MBA degree. Before joining SWR, he was a freelance writer for renounce tech websites. He is currently studying for CFP exam. Interests: Tech stocks, Economic Markets, Blue-chips.

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